Ryman Hospitality Properties, Inc. is set to begin a $40 million renovation of Austin’s Block 21 development including the ACL Live at the Moody Theater and the W Austin hotel following its 2022 purchase of the downtown mixed-use development. RYMAN HOSPITALITY PROPERTIES, INC.

Austin Business Journal reports, "Opry Entertainment Group, a subsidiary of Ryman Hospitality Properties Inc. (NYSE: RHP), will begin work this week on a $40 million renovation of downtown Austin’s Block 21, the Second Street mixed-use development home to Austin’s ACL Live at the Moody Theater and the W Austin hotel.

The renovation will include the construction of a new 2,060-square-foot terrace enclosure over the existing PNC Plaza, which will serve as a private event space designed to serve both ACL Live and the W Austin and is planned to be completed by the summer of 2024. Other improvements include a facelift to the W Austin entrance and other public spaces on site including its coffee shop, restaurant and bars. Renovations of the hotel’s more than 200 guest rooms are planned to be completed in fall 2024. Both the W Austin and ACL Live will remain open during the upgrades, company representatives said.

The $40 million investment follows the Nashville-based group’s acquisition of the mixed-use development for $260 million in late May 2022. It was purchased from Stratus Properties Inc. (Nasdaq: STRS).

“This is a first-class asset in a tremendous market,” said Mark Fioravanti, the present and CEO of Ryman Hospitality Properties. “We think that, through investment, we can not only elevate the experience, tell the Austin music scene story in a more compelling way, but also generate returns for our shareholders.”

Fioravanti said the renovation is intended to enhance the existing hotel experience, including its food and beverage offerings, while celebrating Austin’s music culture directly into the design of the facility. The company has a history of owning and managing premier entertainment facilities.

“This hotel has terrific bones and I would say the best location in downtown Austin,” Fioravanti said. “What it really needs is some investment to improve the guest experience and like the look, feel and experience to ACL Live and create a celebration of what Austin is all about.”

Part of a strategic investment with the London-based independent firm Atairos and NBCUniversal Media LLC, Ryman Hospitality Properties Inc. and its subsidiary Opry Entertainment Group own and operate a portfolio of entertainment venues including Grand Ole Opry, the iconic Ryman Auditorium, WSM Radio, the Blake Shelton-inspired Ole Red brand, Circle TV Network and now ACL Live at Moody Theater.

The two outside investment partners own a 30% stake in the Opry Entertainment Group after making a $293 million investment in 2022. At the time, Ryman Hospitality was valued at about $1.4 billion.

Ryman Hospitality has contracted with Atlanta-based design firm BLUR Workshop LLC and fellow Nashville-based general contractor D.F. Chase Inc. to carry out the improvements. Representatives of Chase shared that the majority of the project’s subcontractors will be local to Austin.

“This is a team that we've partnered with across the majority of our capital investments. So they understand what our objectives are can ultimately bring our design vision to life,” Fioravanti said.

The coming renovations follows a series of guest enhancements completed this summer, including a dedicated retail area and upgraded food and beverage offerings.

With the W Austin employing a staff of 241 and ACL Live employing a team of 87, the hotel is preparing to add some additional positions to service the enhanced food and beverage amenities once the renovation is complete.

Additionally, Ryman recently reached an agreement to purchase the JW Marriott in San Antonio for $800 million.

The renovations begin at the Austin site just as the city continues its search for partners to redevelop the neighboring William P. Hobby Jr. State Office Building marking a major opportunity for developers to bring new housing to the city's urban core.

Block 21 was originally developed by Stratus. It occupies the entirety of a downtown city block and includes 159 condominiums, the 251-room hotel and the ACL Live Theater with a seating capacity of 2,700. The property also includes 40,000 square feet of office and 18,000 square feet of shops that include a Starbucks coffee shop and Urban Outfitters retail store.

“We viewed it as a tremendous opportunity to own one of the premier venues, and mixed-use developments in one of the premier music cities in the U.S.,” Fioravanti said. “This is a really compelling strategic fit for us. We really view this this as an opportunity to really leverage our capabilities in live entertainment and brand stewardship and in the long term be more involved in the Austin music scene.”"


Source: Austin Business Journal 

Written by: Mike Christen

Published: October 23, 2023


Posted by Grossman & Jones Group on


Email Send a link to post via Email

Leave A Comment

e.g. yourwebsitename.com
Please note that your email address is kept private upon posting.